Buying in Montrose moves fast. You often have only a few days to inspect a home and decide whether to move forward. If you are a first-time or value-conscious buyer, the Texas option period is your safety net. In this guide, you will learn what the option period is, how much it costs, what to do during it, and how to use it to negotiate repairs on Montrose homes and townhomes. Let’s dive in.
Option period basics
The option period is a short window you negotiate in your contract that gives you the unrestricted right to terminate the purchase for any reason. You pay a small, nonrefundable option fee in exchange for this right. It is separate from your earnest money.
Most Texas buyers use the option period to complete inspections, confirm insurance and title details, and decide whether to proceed. The option is created by filling out the option paragraph in the standard Texas residential contract form used by most agents.
How timelines work
Common lengths in Montrose
You and the seller negotiate the number of days. Across Texas, 3 to 10 days is typical. In hot areas like Montrose, you often see shorter periods of 3 to 5 days, while 7 days can be a practical balance if the seller agrees.
When the clock starts
The option period usually begins on the effective date of the contract, which is when everyone has signed. You must deliver any termination notice before the deadline. Exact cutoff rules depend on your contract, so follow the written notice instructions precisely.
Option fee vs earnest money
The option fee is a small, nonrefundable payment for your termination right, commonly around 100 to 300 dollars. In competitive deals, buyers sometimes offer a higher fee or shorten the option days. Earnest money is a separate deposit held in escrow and applied to closing or returned as the contract allows.
Payments and delivery
Your contract states when and to whom you pay the option fee. Confirm delivery steps with your agent and the title company. Also confirm exactly how termination notices must be delivered so you can act quickly if needed.
What to do during the option period
Inspections to schedule first
- General home inspection covering structure, roof, HVAC, plumbing, and electrical.
- Pest and termite inspection, which is very common in Houston.
- Foundation or structural specialist if the home is older or shows signs of movement.
- Sewer scope and drainage assessment, since inner-loop properties can have older lines.
Records and reports to review
- Seller’s disclosure and any previous repair documents.
- Title commitment and public records for liens, easements, assessments, and restrictions.
- Survey review, if available. For townhomes, review the plat and HOA maintenance responsibilities.
Insurance and flood checks
- Check flood maps and confirm flood insurance requirements and premiums with an insurance agent.
- Evaluate windstorm coverage considerations if applicable.
- Ask about recent flood claims and review disclosures carefully.
Making repair requests
How to write requests
Put your request in writing and send it before the option deadline. Be clear if you want repairs completed, a closing credit, a price adjustment, or more information. Include estimates or request bids when appropriate to support your position.
Common seller responses
A seller may agree to repair items, offer a credit, or say no. Sometimes the parties agree to an escrow holdback if work must be finished after closing. If you cannot agree and you are still within the option period, you can terminate and typically receive your earnest money back. The seller normally keeps the option fee.
Negotiation tips for Montrose
- Prioritize critical items like foundation, roof, active leaks, major electrical hazards, and major HVAC failures.
- Ask for quick contractor estimates to back up your requests.
- Use credits when sellers prefer not to manage repairs before closing.
- Adjust expectations by property type. Older cottages may need updates. Newer townhomes may require careful review of HOA responsibilities and any warranty coverage.
Montrose must-checks
Age and construction
Many Montrose homes are older and may have outdated plumbing, wiring, or patchwork renovations. A thorough general inspection plus specialty checks for electrical and plumbing can save you from surprises.
Flood and drainage
Parts of Montrose sit near Buffalo Bayou and lower-lying areas. Flood risk varies block by block. Review flood maps, ask about prior flood claims, and confirm flood insurance requirements and cost early in the option period.
Soil and foundation
Houston’s expansive clay soils can cause foundation movement, especially in older homes. If you see cracks, doors sticking, or slopes in floors, bring in a foundation specialist.
Taxes, assessments, and restrictions
Verify property tax status and exemptions with county records. Check for HOA dues, special assessments, or municipal obligations that could add unexpected costs. If the property is in a historic district or has design controls, review those rules early if you plan to renovate.
Smart strategies for first-time buyers
Balance leverage and cost
A shorter option period can make your offer stronger, but it gives you less time to investigate. A higher option fee can sometimes secure more days, but it increases your sunk cost if you walk away. Waiving the option is risky for first-time and value-focused buyers in Montrose, where older homes can hide expensive defects.
A 7-day option game plan
- Day 0: Deliver option fee and earnest money per contract. Book inspections immediately.
- Days 1 to 2: Complete general, pest, and any specialty inspections like foundation and sewer scope.
- Days 3 to 4: Review reports. Order quick estimates for significant items.
- Days 5 to 6: Draft your repair request or credit list. Align on strategy with your agent.
- Day 7: If needed, deliver your termination notice before the deadline. If moving forward, send your repair amendment and confirm receipt per contract instructions.
If the seller resists repairs
- Request a price credit or closing cost credit tied to firm estimates.
- Use an escrow holdback for repairs that must be completed after closing.
- Focus on structural and safety issues while accepting minor cosmetic items.
Buyer checklist for Montrose
- Confirm your option fee and earnest money delivery, method, and deadlines.
- Schedule general and pest inspections right away. Add foundation and sewer scope as needed.
- Pull flood map info and contact an insurance agent about flood and wind coverage.
- Request seller disclosures and any prior inspection or repair records.
- Review the title commitment for liens, easements, assessments, and restrictions.
- Get contractor estimates for major defects quickly.
- Decide on repairs, credits, or termination. Deliver all notices in writing before the deadline.
- If proceeding, document repairs in a signed amendment and set clear timelines. Use an escrow holdback when repairs will occur after closing.
Common pitfalls to avoid
- Waiting to schedule inspections. In a 3 to 5 day option, every hour matters.
- Confusing option fee with earnest money. The option fee is usually nonrefundable.
- Missing notice requirements. Follow the contract’s delivery method and confirm receipt.
- Ignoring flood insurance until after the option period. Confirm coverage and cost early.
- Overlooking HOA, assessments, or historic rules that could affect budgets or renovation plans.
Your next step
Handled well, the option period protects your budget and narrows risk on a Montrose home. You get a short window to uncover issues, negotiate value, and decide with confidence. If you want a calm, process-driven approach with responsive communication and local vendor support, reach out to Joseph Diosana and our team. We will help you schedule the right inspections, structure your requests, and move from offer to close with clarity.
FAQs
What is the Texas option period for homebuyers?
- It is a short, negotiated window after contract signing that gives you the unrestricted right to terminate for any reason in exchange for a nonrefundable option fee.
How much is the option fee in Houston?
- Many Texas buyers pay about 100 to 300 dollars. In competitive Montrose deals, buyers may increase the fee or shorten the option period to strengthen the offer.
When does the option period start and end?
- It typically starts on the contract’s effective date, the day all parties sign. You must deliver any termination notice before the option deadline and by the method stated in the contract.
What inspections should I prioritize in Montrose?
- General and pest inspections first, then foundation and sewer scope if needed. Review seller disclosures, title, survey, and flood insurance early.
Can I negotiate repairs or credits during the option period?
- Yes. Submit a written request before the deadline. Sellers can agree to repairs, offer credits, or decline. You can terminate within the option window if you cannot reach agreement.
Is the option fee refundable if I cancel?
- No. The option fee is typically nonrefundable. If you terminate during the option period, the seller usually keeps the fee while earnest money is handled per the contract.
Can I extend the option period if I need more time?
- Sometimes. You and the seller can sign a written extension, often with an added option fee or adjusted terms the seller accepts.
